When You Know, You Know. When’s The Right Time To Grow?
Identify the correct time to grow your business using precise, real-time data from your ERP software.
As Operations Director, you will be under constant pressure to squeeze additional profitability from projects. As well as creating new savings by streamlining processes, it is up to you to advise when the right time to grow the business is.
Your ERP software should be your first port of call to provide the information you need. The following three pieces of information - which should all be readily available from your ERP software will help you to grow your business profitably.
1. Employee utilisation
How well used is your workforce? Ideally, your workforce’s time is meticulously planned to ensure that you can bill for as many hours as possible.
Using the statistics from your ERP software, you can improve billable utilisation by seeing where staff are being under or over-utilised. With this information you can reassign staff to other projects and understand if you have the right resources or if you need to employ contractors.
This information should help you accurately identify the skills that you need to add to the team to achieve profitable business growth.
2. Projects at risk
Increased profitability relies on delivering projects on time and on budget. If you can deliver projects early and under budget, you may be able to boost profit further still.
If your business is running at capacity, you will find it increasingly hard to deliver on time.
Data from your ERP software should help you decide whether the problem is down to a lack of resources, or fundamental project management failings. For example, if projects don’t start at the planned time, find out if it’s because resources weren’t available. In this case, there is a clear indication that you need to grow your team.
“A third of businesses cite more effective and efficient project execution as a top business priority.”
– Managing Your Consulting Firm; IDC InfoDoc, 2014
3. Check the financials
Growth should only ever take place when you can prove:
- Strong sales
- Healthy repeat business
- Cashflow remains positive
So use data from your ERP software to confirm the financial health of your business. Without healthy financials in place, investment in business growth is risky and could jeopardise existing operations.
The 3 items to check before green lighting growth
- Check employee resources are being used correctly
- What the risk level of each project is
- Check your ERP software is fully aligned to all operations so it gives you the data you need
With the right tools in place you will be able to make accurate recommendations to successfully and profitably grow your business.